International Journal of Logistics and Procurement Management
Authors: Kaaria N Hellen, Dr. Mwangangi Patrick
Abstract: This study sought to analyze the role of information technology in supply chain performance in public institutions in Kenya. The specific objective for this study were to determine the influence of electronic data interchange, e-tendering, supply chain integration and enterprise resource planning on supply chain performance in public institutions in Kenya. The study applied the research design where both qualitative and quantitative techniques were used. This study used a survey research design. The target population for this study was 159 staff working in 7 directorates in the Judiciary in Nairobi County. This research study used census survey sampling frame to select the targeted population from the 7 seven departments who were directly and indirectly involved. The study used structured and semi-structured instruments to collect both primary and secondary data. The collected data was analyzed with the help of a Statistical Package for Social Sciences (SPSS) version 21. Data was analyzed with the help of multiple regression and analysis for variance. The study used descriptive statistics, inferential statistics, frequency, mean, standard deviation and percentages. The results from the quantitative data were presented through a form of tables. The study results indicated that electronic data interchange has a significant influence on supply chain performance in the Judiciary of Kenya (β1=0.290, p-value=0.005). In addition, the study established that electronic tendering has a significant influence on supply chain performance in the Judiciary of Kenya (β2=0.263, p-value=0.022). The study also established that supply chain integration has a significant influence on supply chain performance in the Judiciary of Kenya (β3=0.102, p-value=0.017). The study revealed that enterprise resource planning has a significant influence on supply chain performance in the Judiciary of Kenya (β3=0.404, p-value=0.000). The study recommends that the Judiciary of Kenya should enhance the use of supply chain integration and joint decision making as a way of enhancing supply chain performance in public institutions. In addition, the organization should automate all its operations so as to improve supply chain performance.
Abstract: Outsourcing has become an important aspect of the overall strategy of any organization. However, despite the many benefits accrued to outsourcing the level of outsourcing in an organization affects management activities in one way or another and extensive outsourcing can lead to loss of internal controls in the organization. The general objective of this study was to establish the effect of outsourcing on supply chain performance at Cadbury Kenya Limited. The study also sought to establish the effect of suppliers’ selection criteria, supplier-firm relationship and information systems integration the supply chain performance at Cadbury Kenya Limited. The study used a case study design. The target population of this study was therefore 127 staff working in Cadbury Kenya Limited. This study used a stratified random sampling to select 50% of the target population. The sample size of this study was therefore 64 respondents. This study used primary data that was collected by use of questionnaires. This study generated both quantitative and qualitative data. Content analysis was used in processing qualitative data and results were presented in prose form. On the other hand, the quantitative data in this research was analyzed by descriptive statistics and inferential statistics using Statistical Package for Social Sciences (SPSS version 21). Data was then presented in tables, charts and graphs. The study also used a multivariate regression analysis to establish the relationship between the dependent variable and dependent variables. This study found that suppliers' selection criteria influences supply chain performance at Cadbury Kenya Limited most followed by supplier-firm relationship and information system integration. The study recommends that Cadbury Kenya Limited should improve their suppliers’ selection criteria by considering suppliers outsourcing cost, reliability, efficiency, experience, performance history, quality of services and delivery performance. The study also recommends that Cadbury Kenya Limited should improve its relationship with suppliers by considering trust, communication, commitment, loyalty, information sharing, relationship quality and relationship magnitude. This study further recommends that Cadbury Kenya Limited should seek for more information systems integration with suppliers so as to enable them to access their suppliers systems.
Wambui Lucy K
Abstract: Buying products which are environmentally responsible can be a dicey occupation. Labeling and certification requirements vary, so a green procurement officer may think that he or she is doing the right thing by purchasing a product which bears a “green” label and later learn that the product is not more environmentally responsible than that of a competitor, even though it's more expensive. Good procurement officers investigate their sources with care, taking the time to confirm that the claims made by a company are accurate and comparing data from different sources to see which vendor is the best. This research study was motivated to investigate the factors affecting the implementation of green procurement practices in NCWSC. The study also sought to establish the effects of trading partners, organizations management and purchase price on the implementation of green procurement practices in NCWSC. Descriptive research design was used in this research study. The population for this study was all the employees of NCWSC. There are 220 employees working in 14 departments of NCWSC. The target population of this study was therefore 220 employees. The researcher in this study used purposive sampling to select the employees working in the supply chain department of NCWSC. The sample size of this study was therefore 18 respondents. The main instrument in data collection was self-administered questionnaires. The research was quantitative in nature. Descriptive statistics generated percentages, mean scores and proportions which were presented in tables and figures. This research study found that trading partners influence the implementation of green procurement practices in NCWSC to a great extent. The study also established that a green supply chain can improve environmental performance (reducing waste and emissions as well as increasing environmental commitment). It was also revealed that purchase price affects implementation of procurement practices to a great extent. This study also found that organizational management influences implementation of green procurement practices at NCSWC to a great extent. In relation to trading partners, the study established that suppliers were highly influencing the implementation of green procurement practices. This study therefore recommends that screening of suppliers for environmental performance should be key deciding factor in the procurement processes.
Authors: Bakari Gabriel Chone DR. Obara Magutu Peterson
Abstract: The use of different procurement contracting practices can negatively or positively influence service delivery in government owned entities. In the recent past procurement contracting practices have been facing various challenges, which include increase in cost, political interference, lack of stakeholders involvement, compliance with best practices as well as professionalism of procurement workforce. The objectives of this study were to establish the procurement contracting practices used by government owned entities in the Ministry of Transport and Infrastructure in Kenya and to determine the relationship between procurement contracting practices and service delivery of government owned entities in the Ministry of Transport and Infrastructure in Kenya. This study used a descriptive research design. The target population of this study was all the 351 staff working in the procurement departments in government owned entities under the ministry of transport and infrastructure. Stratified random sampling was used to select 50% of the target population in this study. The study used primary data, which was collected by use of semi structured questionnaires. The questionnaires in this study will generate both qualitative and quantitative data. Qualitative data was analzed by use of thematic content analysis presented in a prose form. Quantitative data was analysed by use of descriptive and inferential statistics through the help of Statistical Package for Social Sciences (SPSS) version 21. Descriptive statistics included percentages, frequencies, measures of central tendencies (mean) and measures of dispersion (standard deviation). Data was then presented in graphs and tables. Further, a correlation analysis and multivariate regression analysis was used to establish the relationship between the dependent and the independent variables. The study established that government owned entities were using competitive procurement contracting practices, relational procurement contracting practices, non-competitive procurement contracting practices and negotiated procurement contracting practices. The study also found that all the four procurement contracting practices were significantly influencing service delivery in government owned entities. However, competitive contracting practices had the most significant influence on service delivery in government owned entities most, followed by relational procurement contracting practices, non-competitive contracting practices and negotiated procurement contracting practices. Although competitive contracting practices, relational procurement contracting practices and negotiated procurement contracting practices had a positive influence on service delivery, non-competitive contracting practices had a negative influence. The study recommends that the government of Kenya should formulate more policies to emphasize on the use of competitive procurement contracting practices as they will help to reduce corruption, ensure quality and low cost as well as improve service delivery.
- FACTORS AFFECTING THE MANAGEMENT OF INVENTORY IN THE NATIONAL GOVERNMENT OF KENYA (A CASE OF KENYA POLICE SERVICE IN NAIROBI COUNTY)
Authors: Wambua Joseph N., Dr. Were Susan
Abstract: Proper procurement of public goods and services is imperative for good economic management and addressing leakages of government funds. As a result, the public procurement and disposal of public assets should not be taken lightly. The disposal of goods and equipment are important parameters for gauging the efficiency of service delivery and development interventions in a country. This study sought to explore the factors affecting management of inventory in the national government of Kenya. The study also sought to determine how disposal methods, management style, information technology and staff competency affect the management of inventory in the Kenya Police Service in Nairobi County. The study also reviewed relevant theories and empirical data. Descriptive research design was adopted. The targeted population was 97 procurement and accounts officers working in the headquarters of Kenya police Service and the 11 divisions located in Nairobi County. A census survey was used, where all the 97 personnel were involved in the study. Data was collected using semi structured questionnaires, which was properly designed to variables under this study. Data collected was analyzed using descriptive and inferential statistics with the help of SPSS version 22. Inferential statistics included multivariate regression analysis. The results were presented using frequency tables, figures, pie charts and bar graphs. The study found that disposal methods have a positive and significant influence on the management of inventory in the Kenya Police Service in Nairobi County (β1=0.288, p-value=0.000). The study also found that management style has a positive and significant and the management of inventory in the Kenya Police Service in Nairobi County (β2=0.176, p-value=0.100). The study further established that information technology has a positive and significant influence on the management of inventory in the Kenya Police Service in Nairobi County (β3=0.289, p-value=0.019). In addition, the study established that staff competency has a positive and significant influence on the management of inventory in the Kenya Police Service in Nairobi County (β4=0.263, p-value=0.025). The study recommends that the Kenya Police Service in Nairobi County should lower their costs to improve on the auction process and increase number of customers. The study also recommends that leaders in the Kenya Police Service should embrace participative leadership by involving the staff in decision making involving procurement and inventory management. Also, Kenya Police Service in Nairobi County should adopt electronic data interchange to improve inventory tracking by use of information technology in improving inventory management.
- INFLUENCE OF INVENTORY MANAGEMENT ON THE PERFORMANCE OF THE ENERGY SECTOR IN KENYA: A CASE OF KENYA POWER LIMITED
Authors: Kamau Martin Muiruri, Dr. Patrick Mwangangi
Abstract: Inventory constitutes the most significant part of firms in the energy sector. Because of the huge inventories maintained, a considerable sum of an organization's fund is being committed to them. Thus it becomes absolutely imperative to manage inventories efficiently so as to avoid the costs of changing production rates, overstocking, stock outs and unnecessary cost. This study therefore sought to investigate on the influence of inventory management on the performance of the energy sector in Kenya with a special focus on Kenya Power Limited. The study also sought to establish the influence of raw material management, inventory control, warehouse management and process auditing on the performance of Kenya Power Limited. This study used descriptive research design. The target population of this study was all the 146 staff working in the three levels of management in Kenya Power Limited. This was a census study and hence all the 146 respondents were included in the study. The study used primary data which was collected by use of self-administered questionnaires; the questionnaire includes structured and unstructured questions. Data analysis was both quantitative as well as qualitative. Qualitative data from the open ended questions was analyzed by use of thematic analysis and the results were presented in a prose form. On the other hand, quantitative data was edited and coded into Statistical Package for Social Sciences (SPSS version 22) for analysis. Both descriptive and inferential statistics were used to analyze quantitative data. The analyzed data was then presented in tables and figures. A multivariate regression analysis was also carried out to determine the relationship between dependent variable and the four independent variables. The study found that inventory control influences the performance of Kenya Power Limited most, followed by material management, Warehouse management and Process auditing. The study recommends that Kenya Power Limited to should enhance material flow in the organization as a way or enhancing efficiency in service delivery. The study also recommends that Kenya Power Limited management should improve inventory tracking by adopting information technology.
- INFLUENCE OF SUSTAINABLE SUPPLIER COLLABORATION PRACTICES ON PERFORMANCE OF THE GOVERNMENT MINISTRIES IN KENYA
Authors: Vincensia Anyango Apopa, Dr. Mike Amuhaya Iravo, Dr. Anthony Gichuhi Waititu, Prof. Robert Arasa
Abstract: Organizations are under increasing pressure to avoid supplier problems and to attract and retain the high performers. Effective collaboration results into reduced inventory both to the material suppliers and customers, increased revenue, lower order management costs, higher gross margin, better forecast accuracy, better allocation of budgets, lower warehousing costs, lower material acquisition costs, fewer stock outs, lower freight costs, faster and more reliable delivery, lower capital costs, reduced depreciation and lower fixed costs. The objective of the study was to examine the influence of sustainable supplier collaboration practices on performance of the government ministries in Kenya. The study adopted descriptive survey design and a cross sectional study design. The unit of analysis for this study was 20 government ministries with a target population of 1372 staff working in the supply chain management department/units in the 20 government ministries in Kenya. Stratified random sampling was used to ensure representativeness of the sample. Both primary and secondary data were used. This study made use of semi-structured questionnaires to collect primary data. A pilot test was conducted to test the reliability and validity of the data collection instruments. Both qualitative and quantitative techniques were used to analyse the data. SPSS software program version 22 was used to facilitate data processing and analysis. Thematic content analysis was used to analyze qualitative data. Both descriptive and inferential statistics were used to analyze quantitative data. Analysis of variance, correlation analysis, chi-square and univariate regression analysis were used. The study found that sustainable supplier collaboration has a positive and significant influence on the performance of government ministries in Kenya. The study found government ministries in Kenya do not exchange information that help establish business planning and do not share proprietary information with suppliers. In addition, government ministers do not contact their suppliers frequently and have no compatible communication and information system with their supplier. Also, they do not help suppliers to improve their product quality and they do not solve procurement related problems jointly with suppliers. The study concludes organizational culture influences the association between the sustainable supplier collaboration and the performance of government ministries in Kenya. The study recommends that the government should come up with a policy requiring suppliers to have compatible information system with public institutions. In addition, the government of Kenya should come up with training programs to help suppliers improve the quality of their products and services.
- INFLUENCE OF PROCUREMENT MANAGEMENT PROCESS ON PERFORMANCE OF DONOR FUNDED PROJECTS IN KENYA: A CASE OF AFRICA DEVELOPMENT BANK IN KENYA
Authors: Koech Josephine Cherono, Dr. Mwangangi Patrick
Abstract: Procurement management process is a practice used by most organizations yet not followed to the later by many organizations. Procurement management is the systematic approach used for buying all the goods and services needed for a company to stay sustainable. Donor organizations and development agencies view projects as important vehicles to achieving their stipulated objectives and targets. The general objective of the study is to establish the influence of procurement management process on performance of donor funded projects in Kenya. The specific objectives of the study include to establish the influence of procurement planning on performance of donor funded projects in Kenya, to identify the influence of solicitation process on performance of donor funded projects in Kenya, to establish the influence of source selection on performance of donor funded projects in Kenya, to identify the influence of contract administration on performance donor funded projects in Kenya. The study was confined to African Development Bank projects in Kenya.The researcher was a descriptive survey design to carry out the study. The study population for this research comprised of 24 projects African Development Bank funded projects and the targeted population was 144 persons comprising of project managers, procurement officers, implementation specialists, technical experts and task managers, working in different capacities of the projects. The study used purposive sample to pick 6 respondents from each of the 24, giving a sample of 144 respondents. A questionnaire was used to collect data from the respondents. The researcher will use drop and pick method to collect data. A pilot study was conducted to pretest the validity and reliability of instruments for data collection. The collected data was analysed using descriptive and inferential analysis. Data from questionnaire will be coded and logged in the computer using Statistical Package for Social Science (SPSS).The study further adopted regression analysis to determine the relationship among the variables. The study found that procurement planning, sollicitation, source sélection, contract administration influenced procurement management process as per regression analysis. The coefficient of determination R2= 0.644 shows the predictive power of the model and in this case 64.4% of variations in the procurement management processes is explained by the independent variables. The adjusted coefficient of determination R2 shows the predictive power when adjusted for degrees of freedom and sample size. In this case, after the adjustments 61.8% of the variations in the procurement management process is explained by the independent variables. The study concludes project management process is poorly handled in procurement system during the implementation of the donor funded projects. However the study also concludes that open solicitation is used mostly compared to other solicitation methods; there is transparency in the solicitation process. The study mainly recommends Timely completion of donor funded projects should be achieved by enhancing transparent procurement management process, employing monitoring and evaluation technique. Completion time of projects should be improved which will enhance the project management process.